# Greater Fool Theory

The greater fool theory is a thesis in economics that market participants can sometimes profit from the purchase (i.e. [speculation](speculation.md)) of overvalued assets ,  assets whose [market-value](market-value.md) drastically exceeding their [fundamental-value](fundamental-value.md) ,  if those assets can later be resold at an even higher price to another market participant who makes the same assumption and so on ad infinitum.

The greater fool theory presumes an infinite chain of fools in order for all participants to "make it" or profit from the [bubble](bubble.md).